Filing of GST returns and reduction of rate of interest benefit should be further extended to 30 September 2020 by GST Council: PHD Chamber

No.PR-140 June 20, 2020 New Delhi Filing of GST returns and reduction of rate of interest benefit should be further extended to 30 September 2020 by GST Council: PHD Chamber Eminent experts in the field of taxation extensively discussed the Ramifications and Reliefs in GST in Lockdown Period along with Decisions taken up in 40th GST Council Meeting in the webinar organized by PHD Chamber of Commerce and Industry today 20 June 2020, said the Industry Body, PHD Chamber of Commerce and Industry in a press statement issued here today. The eminent experts at the webinar were of the view that Pandemic COVID-19 situation is not fully improved despite the 4 Lockdown and unlock 1, the dates for filing of returns and reduction of rate of interest benefit should be further extended to 30 September, 2020. The objective of the Webinar was to discuss the developments in GST regime, recent announcements made by the GST council, related concerns, relief measures and its impact on trade and industry. The webinar also discussed the issues in Input Tax Credit availability on terminated contracts, CSR, issues of time of supply and issuance of credit notes and other pertinent issues during COVID-19 Period. Mr. Pradeep Multani, Vice President, PHDCCI while speaking at Webinar on Ramifications and Reliefs in GST in Lockdown Period Covering Decisions taken up in 40th GST Council Meeting stated that the decisions to provide relief to small tax payers in terms of filling GST returns, waiver of late fees and interest are highly encouraging to mitigate the daunting impact of pandemic COVID-19 and promote ease of doing business for small tax payers in the coming times. Mr Bimal Jain, Mentor, Indirect Taxes Committee, PHDCCI discussed the GST impact of terminated contracts on taxpayers and suggested measures on how to resolve GST issues in terminated contracts during COVID-19 period. He also discussed the Input Tax Credit pertinent to goods lost, destroyed, written off and disposed off by way of gift & sample and other pertinent issues during COVID-19 period. He said that the credit note can be issued in case of sales return or certain goods or services rejected by the recipient, goods damaged in transit or in some other way, error in the price of goods or services in the original invoice, over payment by the recipient on the original invoice. Mr. N K Gupta, Chair, Indirect Taxes Committee, PHDCCI in his theme presentation said that no tax relief has been provided by the Government or GST Council under GST. He said that extension of dates and the reduction of interest rates are already available under the doctrine of Force Majeure. No doubt circulars and notification issues by department with regard to extension of dates and reduction of interest rates will reduce the litigation burden. Mr. Gaurav Gupta, Co-Chair, Indirect Taxes Committee, PHDCCI highlighted that the maximum late fee for non-filing of GSTR-3B returns for period July 2017 - January 2020 for people who have tax liability has been capped to Rs 500 will apply to all returns submitted during July 1, 2020 - September 30, 2020, however the Council has not provide any extension of dates of filing of GSTR-3B for period July 2017 - January 2020. He suggested that the Government should provide complete waiver of Interest instead of reduction of interest rates from 18% to 9%. Further he suggested that the payment of taxes should be independent of return filing, this with surely increase the governments revenue. Mr. Puneet Agrawal, Partner, ALA Legal discussed the rejection of installment for the payment of tax application under section 80 of the CGST Act, Non-Sanctioning/Withholding of eligible refund in case of exports. He stated that the Hon'ble Finance Minister has announced immediate relief to the assessee in form of expeditious disposal of exports refunds during the COVID 19 crisis. However, department should enhance the speed of disposing refunds to the assesses in the coming times. Mr. Rakesh Garg, Partner, SSAR & Associates in his presentation said the provision related 'time of supply' are very important; and until the 'time of supply' has not arrived then, GST shall not be levied. Mr. Saurabh Sanyal, Secretary General, PHDCCI appreciated the relief measures announced by GST Council in terms of filling GST returns, extensions to revoke GST registration cancellation, reduction in late fees for late filing, among other announcements. He said that these decisions were aimed at easing the burden of businesses facing challenges because of the COVID-19 crisis. He proposed the formal vote of thanks to the esteemed speakers and participants. Dr. S P Sharma, Chief Economist, PHDCCI stated that the economy is slowly gaining pace due to phased lifting of the lockdown, the GST Council discussed a number of aspects related to GST and provided relief measures for filing GST returns to promote ease of doing business especially for small tax payers. The Webinar concluded with an extensive discussion and Q & A Session with an overwhelming response from the participants. Ends Media Division PHD Chamber of Commerce and Industry